What is token sales (token scheme)

What is token sales TokenOffering is an interactive way between Cryptocurrency traders and investors, because it allows people to gain profits by buying assets in the market According to a recent survey released by CryptoSlate, 70% of respondents stated that they have completed their investment in token sales; 60% of people are not aware of the risks brought by this investment and view it as a high return strategy. The total number of these participants exceeds 500000, many of whom claim to have raised at least $100 million for such token sales. Although most respondents agree that their tokens will not be sold, a considerable number of respondents believe that such activities may help drive the market. (Bitcoinist)

Token Scheme

Editor’s note: This article is from Blue Fox Notes (ID: Lanhubiji), written by Peter Vigna, from the “Blue Fox Notes” community’s “Lu” (L) Translator’s note: Token design refers to the distribution of assets or tokens to the community in a certain way on a blockchain network. It is commonly referred to as digital currency. However, these encryption projects all have a common feature – there is no centralized participant. Therefore, we can use a novel model to solve this problem: the token scheme. The token solution is a new model that achieves decentralized transactions and governance by allocating assets/tokens between different protocols The token scheme is a new economic form established in a smart contract based system. This means that the native token of the project is a specific ERC-20 standard. Tokens represent transferable value rather than serving as a medium of exchange When people want to create their own tokens, you need to have two methods:

1. Use them to purchase goods 2. Enable the holder to have the right to their token 3. Allow the holder to purchase, sell or transfer at any time If tokens have certain functions that cannot be linked to real-world items, they should be resisted. However, since tokens themselves are not as simple and indivisible as Bitcoin, this idea is very suitable for token design. For example, if a Token can fully control the price of the entire market, its price should increase over time. But for those who think this mechanism is very effective, is this a good idea? Of course not! If you don’t understand this, you can try another example, such as a Stablecoin To give a few examples, let’s assume that Tether has issued $1 billion, and the market value of USDC accounts for 1% of all circulation, while DAI only accounts for 4% Tether is a decentralized financial institution. It can operate globally and can be converted into Fiat money at any time. If someone is willing to pay interest, they can borrow money to do more things. In addition, there are other types of products that may also provide similar services, such as insurance policies, loans, and other financing services Token schemes can also be used to motivate developers to build their applications, products, and services, as well as promote them to the community.